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Also traded in: Argentina, Austria, Chile, Germany, Mexico

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash-to-Debt 1.15
ADP's Cash-to-Debt is ranked lower than
54% of the 716 Companies
in the Global Business Services industry.

( Industry Median: 1.31 vs. ADP: 1.15 )
Ranked among companies with meaningful Cash-to-Debt only.
ADP' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.07  Med: 6.83 Max: 407.09
Current: 1.15
0.07
407.09
Equity-to-Asset 0.09
ADP's Equity-to-Asset is ranked lower than
94% of the 695 Companies
in the Global Business Services industry.

( Industry Median: 0.51 vs. ADP: 0.09 )
Ranked among companies with meaningful Equity-to-Asset only.
ADP' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.09  Med: 0.24 Max: 0.71
Current: 0.09
0.09
0.71
Debt-to-Equity 0.50
ADP's Debt-to-Equity is ranked lower than
52% of the 500 Companies
in the Global Business Services industry.

( Industry Median: 0.47 vs. ADP: 0.50 )
Ranked among companies with meaningful Debt-to-Equity only.
ADP' s Debt-to-Equity Range Over the Past 10 Years
Min: 0  Med: 0.05 Max: 3.73
Current: 0.5
0
3.73
Debt-to-EBITDA 0.71
ADP's Debt-to-EBITDA is ranked higher than
77% of the 483 Companies
in the Global Business Services industry.

( Industry Median: 2.21 vs. ADP: 0.71 )
Ranked among companies with meaningful Debt-to-EBITDA only.
ADP' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0  Med: 0.02 Max: 0.78
Current: 0.71
0
0.78
Interest Coverage 24.46
ADP's Interest Coverage is ranked higher than
53% of the 628 Companies
in the Global Business Services industry.

( Industry Median: 20.39 vs. ADP: 24.46 )
Ranked among companies with meaningful Interest Coverage only.
ADP' s Interest Coverage Range Over the Past 10 Years
Min: 21.44  Med: 194.56 Max: 309.85
Current: 24.46
21.44
309.85
Piotroski F-Score: 6
Altman Z-Score: 1.93
Beneish M-Score: -2.31
WACC vs ROIC
7.70%
50.26%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating Margin % 18.13
ADP's Operating Margin % is ranked higher than
84% of the 710 Companies
in the Global Business Services industry.

( Industry Median: 5.99 vs. ADP: 18.13 )
Ranked among companies with meaningful Operating Margin % only.
ADP' s Operating Margin % Range Over the Past 10 Years
Min: 17.66  Med: 18.59 Max: 20.65
Current: 18.13
17.66
20.65
Net Margin % 13.60
ADP's Net Margin % is ranked higher than
82% of the 710 Companies
in the Global Business Services industry.

( Industry Median: 3.95 vs. ADP: 13.60 )
Ranked among companies with meaningful Net Margin % only.
ADP' s Net Margin % Range Over the Past 10 Years
Min: 12.76  Med: 13.79 Max: 15.08
Current: 13.6
12.76
15.08
ROE % 44.46
ADP's ROE % is ranked higher than
94% of the 684 Companies
in the Global Business Services industry.

( Industry Median: 8.52 vs. ADP: 44.46 )
Ranked among companies with meaningful ROE % only.
ADP' s ROE % Range Over the Past 10 Years
Min: 21.83  Med: 23.87 Max: 44.46
Current: 44.46
21.83
44.46
ROA % 4.33
ADP's ROA % is ranked higher than
54% of the 720 Companies
in the Global Business Services industry.

( Industry Median: 3.54 vs. ADP: 4.33 )
Ranked among companies with meaningful ROA % only.
ADP' s ROA % Range Over the Past 10 Years
Min: 3.89  Med: 4.46 Max: 5.43
Current: 4.33
3.89
5.43
ROC (Joel Greenblatt) % 257.20
ADP's ROC (Joel Greenblatt) % is ranked higher than
91% of the 708 Companies
in the Global Business Services industry.

( Industry Median: 19.74 vs. ADP: 257.20 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
ADP' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 163.73  Med: 228.22 Max: 303.37
Current: 257.2
163.73
303.37
3-Year Revenue Growth Rate 9.10
ADP's 3-Year Revenue Growth Rate is ranked higher than
69% of the 603 Companies
in the Global Business Services industry.

( Industry Median: 4.40 vs. ADP: 9.10 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
ADP' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -2.2  Med: 9.1 Max: 17
Current: 9.1
-2.2
17
3-Year EBITDA Growth Rate 13.40
ADP's 3-Year EBITDA Growth Rate is ranked higher than
69% of the 533 Companies
in the Global Business Services industry.

( Industry Median: 5.10 vs. ADP: 13.40 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
ADP' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -3.7  Med: 11.4 Max: 17.5
Current: 13.4
-3.7
17.5
3-Year EPS without NRI Growth Rate 14.40
ADP's 3-Year EPS without NRI Growth Rate is ranked higher than
60% of the 487 Companies
in the Global Business Services industry.

( Industry Median: 7.90 vs. ADP: 14.40 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
ADP' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -9  Med: 12.8 Max: 21.8
Current: 14.4
-9
21.8
» ADP's 30-Y Financials

Financials (Next Earnings Date: 2018-07-27)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q3 2017

ADP Guru Trades in Q3 2017

Ken Fisher 5,501 sh (New)
Jim Simons 2,178,300 sh (New)
George Soros 2,400 sh (New)
Bill Ackman 8,798,442 sh (+402.52%)
Mairs and Power 6,767 sh (+16.33%)
Jeremy Grantham 343,322 sh (+11.69%)
Paul Tudor Jones 9,907 sh (+10.77%)
First Eagle Investment 1,601,051 sh (+2.42%)
Tom Gayner 530,700 sh (unchged)
Jeremy Grantham 150,000 sh (unchged)
Steven Cohen 750,000 sh (unchged)
Jeff Auxier 10,252 sh (-0.49%)
Dodge & Cox 1,950 sh (-4.88%)
Bill Nygren 3,120,000 sh (-8.77%)
Manning & Napier Advisors, Inc 81,557 sh (-9.06%)
MS Global Franchise Fund 208,424 sh (-12.30%)
Caxton Associates 3,700 sh (-36.21%)
Joel Greenblatt 148,246 sh (-47.08%)
» More
Q4 2017

ADP Guru Trades in Q4 2017

Pioneer Investments 418,615 sh (New)
Steven Cohen 86,600 sh (New)
Bill Nygren 3,320,000 sh (+6.41%)
First Eagle Investment 1,607,959 sh (+0.43%)
MS Global Franchise Fund 209,014 sh (+0.28%)
Tom Gayner 530,700 sh (unchged)
Mairs and Power 6,767 sh (unchged)
Jeremy Grantham 132,000 sh (unchged)
Jeff Auxier 10,252 sh (unchged)
Dodge & Cox 1,950 sh (unchged)
Bill Ackman 8,798,442 sh (unchged)
Caxton Associates Sold Out
George Soros Sold Out
Joel Greenblatt Sold Out
Ken Fisher 2,585 sh (-53.01%)
Jim Simons 701,100 sh (-67.81%)
Paul Tudor Jones 3,043 sh (-69.28%)
Jeremy Grantham 842 sh (-99.75%)
» More
Q1 2018

ADP Guru Trades in Q1 2018

Ray Dalio 48,862 sh (New)
Jeremy Grantham 59,127 sh (+6922.21%)
Steven Cohen 203,859 sh (+135.40%)
Pioneer Investments 504,477 sh (+20.51%)
MS Global Franchise Fund 233,954 sh (+11.93%)
Tom Gayner 530,700 sh (unchged)
Jeff Auxier 10,252 sh (unchged)
Jeremy Grantham 120,000 sh (unchged)
Steven Cohen 1,900,000 sh (unchged)
Bill Nygren 3,320,000 sh (unchged)
Jim Simons Sold Out
Paul Tudor Jones Sold Out
First Eagle Investment 1,599,999 sh (-0.50%)
Dodge & Cox 1,800 sh (-7.69%)
Bill Ackman 7,941,957 sh (-9.73%)
Ken Fisher 2,208 sh (-14.58%)
Mairs and Power 5,052 sh (-25.34%)
» More
Q2 2018

ADP Guru Trades in Q2 2018

Ken Fisher 2,569 sh (+16.35%)
» More
» Details

Insider Trades

Latest Guru Trades with ADP

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ken Fisher 2018-06-30 Add 16.35%$113.3 - $140.34 $ 137.509%2,569
Bill Ackman 2018-06-25 Reduce -46.80%10.51%Premium Member Access $136.63 $ 137.501%4,225,365
Bill Ackman 2018-03-31 Reduce -9.73%1.71%$108.25 - $123.63 $ 137.5018%7,941,957
First Eagle Investment 2018-03-31 Reduce -0.50%$108.25 - $123.63 $ 137.5018%1,599,999
Ken Fisher 2018-03-31 Reduce -14.58%$108.25 - $123.63 $ 137.5018%2,208
Dodge & Cox 2018-03-31 Reduce -7.69%$108.25 - $123.63 $ 137.5018%1,800
Bill Ackman 2018-03-12 Reduce -9.73%1.71%Premium Member Access $117.53 $ 137.5017%7,941,957
Bill Nygren 2017-12-31 Add 6.41%0.13%$109.32 - $118.64 $ 137.5020%3,320,000
First Eagle Investment 2017-12-31 Add 0.43%$109.32 - $118.64 $ 137.5020%1,607,959
Ken Fisher 2017-12-31 Reduce -53.01%$109.32 - $118.64 $ 137.5020%2,585
Joel Greenblatt 2017-12-31 Sold Out 0.24%$109.32 - $118.64 $ 137.5020%0
George Soros 2017-12-31 Sold Out 0.01%$109.32 - $118.64 $ 137.5020%0
Bill Ackman 2017-09-30 Add 402.52%15.07%$101.31 - $118.91 $ 137.5028%8,798,442
Bill Nygren 2017-09-30 Reduce -8.77%0.18%$101.31 - $118.91 $ 137.5028%3,120,000
First Eagle Investment 2017-09-30 Add 2.42%0.01%$101.31 - $118.91 $ 137.5028%1,601,051
Joel Greenblatt 2017-09-30 Reduce -47.08%0.19%$101.31 - $118.91 $ 137.5028%148,246
Ken Fisher 2017-09-30 New Buy$101.31 - $118.91 $ 137.5028%5,501
George Soros 2017-09-30 New Buy0.01%$101.31 - $118.91 $ 137.5028%2,400
Dodge & Cox 2017-09-30 Reduce -4.88%$101.31 - $118.91 $ 137.5028%1,950
Bill Ackman 2017-08-30 Add 402.52%11.04%Premium Member Access $105.93 $ 137.5030%8,798,442
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Business Description

Industry: Business Services » Business Services    NAICS: 561499    SIC: 7389
Compare:NYSE:FIS, NAS:FISV, NYSE:WP, NAS:PAYX, LSE:EXPN, NAS:INFO, XSWX:SGSN, NYSE:FLT, NAS:CTAS, NYSE:GPN, NAS:VRSK, TSE:4901, XPAR:SW, NYSE:FDC, NYSE:EFX, NYSE:BR, ASX:BXB, NYSE:TRU, NYSE:ZTO, XPAR:BVI » details
Traded in other countries:ADP.Argentina, ADP.Austria, ADP.Chile, ADP.Germany, ADPI.Mexico,
Headquarter Location:USA
Automatic Data Processing Inc is a provider of miscellaneous business solutions. Its business includes provision of technology-based outsourcing solutions to employers, vehicle retailers and manufacturers.

ADP competes in the human resources administration services industry. It provides services that satisfy companies' human resources needs, such as payroll processing and benefits administration. ADP was founded in 1949 and has its headquarters in Roseland, New Jersey. It serves more than 650,000 clients and has 57,000 employees worldwide.

Guru Investment Theses on Automatic Data Processing Inc

Bill Ackman Comments on Automatic Data Processing - May 17, 2018

Automatic Data Processing, Inc. (NASDAQ:ADP)

ADP reported a strong quarter driven by accelerated bookings growth and positive improvement in revenue retention. EPS increased 16% year-over-year, aided by 8% revenue growth (6% organic) and the reduction of its corporate tax rate. The company announced updated fiscal year 2018 guidance, and now forecasts a faster than expected improvement in margins for Employer Services. We believe the revised forecast is an early indication of potential larger improvements to come.

During our proxy contest with ADP last fall, the company committed to achieving approximately $5.05 of EPS by fiscal year June 2020. Since then, the Company has benefited from a number of extrinsic factors, not due to management actions, which should collectively boost FY 2020 EPS by 20%, or about $1 per share. These positive developments include corporate tax reform, the impact of rising interest rates on ADP’s float income, and the upcoming adoption of a required accounting change (ASC606), which should cause ADP’s earnings to more accurately reflect economic reality. In March, ADP announced an Early Retirement Program which should increase recurring earnings by an additional ~$0.25 or more.

Considered together, these factors should enable ADP to achieve a minimum of ~$6.25+ in EPS by FY 2020, nearly 25% more than the guidance provided by management last September, not including any other initiatives ADP undertakes to improve profitability. As consensus estimates for 2020 are only $5.63 per share, 10% below our minimum base estimate, we do not believe that ADP analysts and investors have fully considered the impact of these factors, which we outline in the table below:

We continue to believe that ADP’s potential is substantially greater than is reflected by its current guidance even when updated for the factors outlined above. Commentary by management on the recent earnings call suggests that management shares this view. On the call, management qualitatively elaborated on a large number of initiatives to improve growth and profitability in addition to its Early Retirement Program including its Service Alignment Initiative, the completion of mid-market migrations onto a single product platform, the roll-out of ADP’s new payroll and tax computation back-end engines, and other undisclosed initiatives. Furthermore, ADP recently promoted an internal executive to the new role of Chief Transformation Officer, and announced its intention to expand its transformation goals to include “additional operational improvement initiatives.”

Pro forma for the completion of mid-market migrations, we estimate that more than 60% of Employer Services revenue is now being generated by its small- and mid-market businesses which run on two next-generation platforms, Run and Workforce Now, which should eventually achieve SaaS (software-as-a-service) margins of more than 40%. ADP’s legacy Enterprise business, which will require product migrations to achieve its potential, generates less than 10% of Employer Services’ revenues according to ADP. We believe that ADP is at an opportune moment in its history to more holistically assess its long-term structural potential, and articulate a plan to realize it.

At ADP’s June 12th Analyst Day, investors are expecting the company to discuss the ongoing business transformation, and to provide investors with an updated outlook for the company which better reflects its potential.

From Bill Ackman (Trades, Portfolio)'s first-quarter 2018 shareholder letter.



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Bill Ackman Comments on ADP - Nov 16, 2017

ADP (NASDAQ:ADP) is a classic Pershing Square investment. It is a simple, predictable, free-cash-flow generative business that has significantly underperformed its potential. As a conservatively financed, high-quality business in a sector with substantial positive growth, we believe it has modest downside. If it is able to achieve its potential, we believe it offers substantial upside.

ADP’s significant underperformance is largely in its Employer Services segment (~2/3 of profit). Employer Services’ underperformance is best demonstrated by its (1) poor operating efficiency and subpar margins of 19%, and (2) declining organic growth of 2%-3% for FY 2018, with much of the revenue weakness due to the company’s lack of a competitive offering in the enterprise segment which serves large companies. Our detailed due diligence revealed the company’s underperformance and outlined a path to drive meaningfully improved performance. With a transformation focused on operational efficiency and technology leadership, we believe that ADP can accelerate growth to 7% or more, in-line with, or better, than industry growth rates, while increasing margins from 19% to 35%.

We have taken an active approach to our investment in the company to highlight the opportunity to drive significant value for all stakeholders. While we strongly preferred to work collaboratively with ADP’s board and management to unlock the company’s potential, as we have successfully done in nearly all of our prior active investments, they were unwilling to do so. Consequently, we were forced to run a proxy contest to highlight ADP’s underperformance and potential for improvement to help effectuate the necessary change.

Proxy contests are tools that activist investors use to effect change at public companies. While we were not successful in gaining seats on ADP’s board this election cycle, our campaign over the past few months has informed ADP shareholders, the board, and management about the potential opportunities that exist to create significant shareholder value.

Our efforts to inform the shareholder base about the company’s underperformance relative to its potential were embraced broadly and garnered substantial minority support for our candidacy on the board. Compared with the ADP incumbent director with the fewest votes, Mr. Eric Fast, we received 31% of the FOR votes – thus nearly a third of shareholders supported us. This 31% does not include shareholders who withheld against Mr. Fast on the recommendation of ISS as its suggested mechanism for facilitating my election to the board. Including these votes, 45% of shareholders either directly supported my candidacy to the board or withheld against Mr. Fast to facilitate my election to the Board. Just 55% of shares voted supported the entire incumbent board slate. Had ADP been willing to use a universal proxy card for this election, we would have likely received one or more seats on the board.

We received substantial minority support no matter how the votes are counted. Putting aside the percentage outcome, we believe that the substantial majority of shareholders who did not support us were convinced that the message we delivered was heard “loud and clear” by the company. These shareholders were willing to give the board and management another year to demonstrate progress on the opportunities that we had identified.

In order to win the contest, ADP’s management and board pivoted their message over the last few weeks from “just say no” to “we agree and we are already doing it,” and made important commitments to shareholders and influential proxy advisory firms. The three most significant commitments were:

(1)Accelerated Revenue Growth: after Employer Services’ organic revenue growth decelerates to 2%-3% this fiscal year, growth will reaccelerate to approximately 7%-9% in the fiscal year beginning July 1, 2018, and will continue into 2019 in order to achieve the company’s guidance of 6%-7% organic growth over the next three fiscal years;

(2)Margin Improvement: ADP will increase operational profit margins by 500-600 basis points over the next three fiscal years despite a projected decline in operational profit in the first fiscal year; and

(3)Enterprise Product Launch: ADP has an “upcoming” release of an Enterprise HCM product which will enable ADP to offer better service and recover Enterprise market share losses.

We and other shareholders will be focused on ensuring that ADP achieves its substantial potential, and will hold the board and management accountable for its commitments to investors. While these undertakings represent just a fraction of ADP’s full potential, they are now the floor for prospective performance. ADP’s performance will have to improve significantly to meet these commitments.

ADP’s shareholders are now fully informed about the opportunity for improvement, and the current board and management will need to announce a credible plan to improve performance. If they do so, we and other shareholders will be happy. If management fails to deliver, we will be focused on next year’s annual meeting. The dynamic we have created by the proxy contest sets up a favorable risk-reward ratio for ADP shareholders. It is a quintessential example of how shareholder activism is supposed to work.

ADP currently trades at an approximately 12% to 15% premium to its unaffected price prior to our rapid accumulation of ADP shares and market rumors of our investment. While the current stock price likely reflects some value for potential corporate tax reform, the market is also anticipating that ADP will make some progress improving its performance. We believe the dynamic created by the proxy contest will lead to substantially improved performance at the company, and, as a result we believe the stock remains undervalued. ADP is also potentially a large beneficiary of corporate tax reform as a reduction in US tax rates will boost ADP’s earnings and its market value by as much as 20%.

From Bill Ackman (Trades, Portfolio)'s third quarter 2017 shareholder letter.

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Bill Ackman Comments on Automatic Data Procession - Aug 18, 2017

Automatic Data Processing, Inc. (NASDAQ:ADP)

ADP is a classic Pershing Square investment. It is a simple, predictable, free-cash-flow generative business that has underperformed its potential. As a conservatively financed, capital-light business with long-term customer relationships in a sector with substantial positive growth, we believe it has modest downside. If it is able to achieve its potential, we believe it offers substantial upside. We acquired ADP for the funds along with a co-investment vehicle (PSVI) which we recently raised to increase our ownership of the company.

We believe that ADP is one of the highest quality businesses we have owned, and one which offers an enormous opportunity for operational improvement. Earlier today, we shared our research and its conclusions on ADP with the investing public on a webcast. We highlighted the sources of underperformance of the company and the opportunities for operational enhancement. You can view the webcast at www.ADPascending.com.

It has been five years since the inception of our investment in Canadian Pacific (NYSE:CP), where we had to wage a proxy contest to obtain board seats in a long-term activist portfolio holding. (While we did run a slate in the Allergan situation in 2014, it was in the context of a hostile takeover which we consider to be a fundamentally different type of situation.) As in CP, we approached ADP and offered to share privately our due diligence and analysis with the board to see if we could work together to unlock value for all shareholders. We requested a one-week extension of the nominating deadline in order to accommodate such a meeting. The board was unwilling to grant an extension, and therefore, we announced our slate on Monday, August 7, 2017 in advance of the deadline. We were disappointed by the company’s response, but it is by no means unprecedented. We have learned from experience that often the greatest opportunities for profit exist at companies that are the most resistant to and threatened by change.

Our experience in this situation has been analogous to the inception of our investment in CP. As in CP, we were offered the opportunity to meet with the CEO and Chairman. As in CP, we believe the company in its public statements and filings mischaracterized our meetings and conversations with the CEO and Chairman. For a detailed summary of our interactions with the company, please read the “Background to This Solicitation” section of our recent proxy filing which you can find here. Fortunately, it now appears that the board is willing to engage. The ADP board has recently asked to interview our board candidates and offered to meet with us on September 5, 2017. We look forward to the opportunity to share our due diligence and analysis with the full board.

From Bill Ackman (Trades, Portfolio)'s second quarter 2017 shareholder letter.

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Top Ranked Articles about Automatic Data Processing Inc

Bill Ackman’s Top 4 Holdings as of June Guru’s top holdings include Oreo manufacturer and two restaurants
According to GuruFocus’ top 10 holdings pages, Pershing Square fund manager Bill Ackman (Trades, Portfolio)’s top four holdings as of June 30 are Restaurant Brands International Inc. (NYSE:QSR), Chipotle Mexican Grill Inc. (NYSE:CMG), Automatic Data Processing Inc. (NASDAQ:ADP) and Mondelez International Inc. (NASDAQ:MDLZ). Read more...
ADP National Employment Report: Private Sector Employment Increased by 177,000 Jobs in June
June 2018 ADP National Employment Report®, ADP Small Business Report® and ADP National Franchise Report® to be Released on THURSDAY, JULY 5, 2018
Bill Ackman Trims Stake in Automatic Data Processing to Manage Investment Size Guru sells over 4.2 million shares yet remains committed to company’s long-term growth potential
Pershing Square fund manager Bill Ackman (Trades, Portfolio) disclosed on Monday that he trimmed 46.80% of his position in Automatic Data Processing Inc. (NASDAQ:ADP) according to GuruFocus Real-Time Picks. Read more...
ADP Uses Machine Learning and Artificial Intelligence to Drive a Data-Fueled Future of Work
ADP to Announce Fourth Quarter Fiscal 2018 Financial Results on August 1, 2018
Bill Ackman’s Picks Looking Up After several missteps, the hedge fund manager's portfolio is in the green
The year is looking bright for Bill Ackman (Trades, Portfolio), CEO of Pershing Square Capital, as most of his portfolio holdings have posted gains for the year, an event not seen since 2014. Read more...
ADP Marketplace Continues Tremendous Growth Thanks to Leading Solutions Providers
ADP Holds Investor Day To Present Strategic Vision, Transformation Initiatives And Financial Outlook
ADP to Enable Organizations to Seamlessly Connect Financial and People Data to Drive Better Business Outcomes with Microsoft Dynamics 365

Ratios

vs
industry
vs
history
PE Ratio 34.39
ADP's PE Ratio is ranked lower than
67% of the 550 Companies
in the Global Business Services industry.

( Industry Median: 22.00 vs. ADP: 34.39 )
Ranked among companies with meaningful PE Ratio only.
ADP' s PE Ratio Range Over the Past 10 Years
Min: 11.25  Med: 19.37 Max: 34.89
Current: 34.39
11.25
34.89
Forward PE Ratio 27.55
ADP's Forward PE Ratio is ranked lower than
83% of the 130 Companies
in the Global Business Services industry.

( Industry Median: 18.62 vs. ADP: 27.55 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 34.39
ADP's PE Ratio without NRI is ranked lower than
67% of the 550 Companies
in the Global Business Services industry.

( Industry Median: 21.98 vs. ADP: 34.39 )
Ranked among companies with meaningful PE Ratio without NRI only.
ADP' s PE Ratio without NRI Range Over the Past 10 Years
Min: 11.29  Med: 20.73 Max: 34.89
Current: 34.39
11.29
34.89
Price-to-Owner-Earnings 37.08
ADP's Price-to-Owner-Earnings is ranked lower than
80% of the 352 Companies
in the Global Business Services industry.

( Industry Median: 21.28 vs. ADP: 37.08 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
ADP' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 11.12  Med: 22.94 Max: 40.51
Current: 37.08
11.12
40.51
PB Ratio 15.07
ADP's PB Ratio is ranked lower than
94% of the 681 Companies
in the Global Business Services industry.

( Industry Median: 2.41 vs. ADP: 15.07 )
Ranked among companies with meaningful PB Ratio only.
ADP' s PB Ratio Range Over the Past 10 Years
Min: 2.79  Med: 4.24 Max: 15.3
Current: 15.07
2.79
15.3
PS Ratio 4.68
ADP's PS Ratio is ranked lower than
80% of the 682 Companies
in the Global Business Services industry.

( Industry Median: 1.31 vs. ADP: 4.68 )
Ranked among companies with meaningful PS Ratio only.
ADP' s PS Ratio Range Over the Past 10 Years
Min: 1.66  Med: 2.67 Max: 4.75
Current: 4.68
1.66
4.75
Price-to-Free-Cash-Flow 34.39
ADP's Price-to-Free-Cash-Flow is ranked lower than
79% of the 299 Companies
in the Global Business Services industry.

( Industry Median: 20.57 vs. ADP: 34.39 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
ADP' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 9.24  Med: 20.69 Max: 37.34
Current: 34.39
9.24
37.34
Price-to-Operating-Cash-Flow 26.94
ADP's Price-to-Operating-Cash-Flow is ranked lower than
81% of the 389 Companies
in the Global Business Services industry.

( Industry Median: 14.18 vs. ADP: 26.94 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
ADP' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 7.88  Med: 16.77 Max: 27.9
Current: 26.94
7.88
27.9
EV-to-EBIT 24.60
ADP's EV-to-EBIT is ranked lower than
63% of the 556 Companies
in the Global Business Services industry.

( Industry Median: 16.89 vs. ADP: 24.60 )
Ranked among companies with meaningful EV-to-EBIT only.
ADP' s EV-to-EBIT Range Over the Past 10 Years
Min: 6.9  Med: 12.6 Max: 25.1
Current: 24.6
6.9
25.1
EV-to-EBITDA 21.42
ADP's EV-to-EBITDA is ranked lower than
70% of the 589 Companies
in the Global Business Services industry.

( Industry Median: 12.35 vs. ADP: 21.42 )
Ranked among companies with meaningful EV-to-EBITDA only.
ADP' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.9  Med: 10.7 Max: 21.9
Current: 21.42
5.9
21.9
EV-to-Revenue 4.62
ADP's EV-to-Revenue is ranked lower than
80% of the 690 Companies
in the Global Business Services industry.

( Industry Median: 1.37 vs. ADP: 4.62 )
Ranked among companies with meaningful EV-to-Revenue only.
ADP' s EV-to-Revenue Range Over the Past 10 Years
Min: 1.5  Med: 2.5 Max: 4.7
Current: 4.62
1.5
4.7
PEG Ratio 4.70
ADP's PEG Ratio is ranked lower than
72% of the 259 Companies
in the Global Business Services industry.

( Industry Median: 2.21 vs. ADP: 4.70 )
Ranked among companies with meaningful PEG Ratio only.
ADP' s PEG Ratio Range Over the Past 10 Years
Min: 0.81  Med: 2.92 Max: 65.83
Current: 4.7
0.81
65.83
Shiller PE Ratio 41.60
ADP's Shiller PE Ratio is ranked lower than
64% of the 162 Companies
in the Global Business Services industry.

( Industry Median: 29.50 vs. ADP: 41.60 )
Ranked among companies with meaningful Shiller PE Ratio only.
ADP' s Shiller PE Ratio Range Over the Past 10 Years
Min: 14.76  Med: 23.21 Max: 42.17
Current: 41.6
14.76
42.17
Current Ratio 1.05
ADP's Current Ratio is ranked lower than
78% of the 672 Companies
in the Global Business Services industry.

( Industry Median: 1.59 vs. ADP: 1.05 )
Ranked among companies with meaningful Current Ratio only.
ADP' s Current Ratio Range Over the Past 10 Years
Min: 0.25  Med: 1.71 Max: 2.64
Current: 1.05
0.25
2.64
Quick Ratio 1.05
ADP's Quick Ratio is ranked lower than
69% of the 671 Companies
in the Global Business Services industry.

( Industry Median: 1.47 vs. ADP: 1.05 )
Ranked among companies with meaningful Quick Ratio only.
ADP' s Quick Ratio Range Over the Past 10 Years
Min: 0.25  Med: 1.67 Max: 2.64
Current: 1.05
0.25
2.64
Days Sales Outstanding 57.06
ADP's Days Sales Outstanding is ranked higher than
56% of the 555 Companies
in the Global Business Services industry.

( Industry Median: 62.45 vs. ADP: 57.06 )
Ranked among companies with meaningful Days Sales Outstanding only.
ADP' s Days Sales Outstanding Range Over the Past 10 Years
Min: 42.38  Med: 49.03 Max: 58.61
Current: 57.06
42.38
58.61
Days Payable 4.99
ADP's Days Payable is ranked lower than
90% of the 460 Companies
in the Global Business Services industry.

( Industry Median: 39.20 vs. ADP: 4.99 )
Ranked among companies with meaningful Days Payable only.
ADP' s Days Payable Range Over the Past 10 Years
Min: 4.99  Med: 9.86 Max: 11.04
Current: 4.99
4.99
11.04

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 1.82
ADP's Dividend Yield % is ranked higher than
50% of the 683 Companies
in the Global Business Services industry.

( Industry Median: 2.18 vs. ADP: 1.82 )
Ranked among companies with meaningful Dividend Yield % only.
ADP' s Dividend Yield % Range Over the Past 10 Years
Min: 1.72  Med: 2.73 Max: 4.33
Current: 1.82
1.72
4.33
Dividend Payout Ratio 0.60
ADP's Dividend Payout Ratio is ranked higher than
68% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 0.45 vs. ADP: 0.60 )
Ranked among companies with meaningful Dividend Payout Ratio only.
ADP' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.49  Med: 0.58 Max: 0.74
Current: 0.6
0.49
0.74
3-Year Dividend Growth Rate 6.10
ADP's 3-Year Dividend Growth Rate is ranked lower than
54% of the 283 Companies
in the Global Business Services industry.

( Industry Median: 6.90 vs. ADP: 6.10 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
ADP' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 6.1  Med: 14.9 Max: 22.1
Current: 6.1
6.1
22.1
Forward Dividend Yield % 2.01
ADP's Forward Dividend Yield % is ranked lower than
56% of the 641 Companies
in the Global Business Services industry.

( Industry Median: 2.45 vs. ADP: 2.01 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 2.60
ADP's 5-Year Yield-on-Cost % is ranked higher than
54% of the 846 Companies
in the Global Business Services industry.

( Industry Median: 2.77 vs. ADP: 2.60 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
ADP' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.46  Med: 3.9 Max: 6.19
Current: 2.6
2.46
6.19
3-Year Average Share Buyback Ratio 2.50
ADP's 3-Year Average Share Buyback Ratio is ranked higher than
93% of the 432 Companies
in the Global Business Services industry.

( Industry Median: -1.70 vs. ADP: 2.50 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
ADP' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -2.7  Med: 1.2 Max: 4.2
Current: 2.5
-2.7
4.2

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 68.07
ADP's Price-to-Tangible-Book is ranked lower than
97% of the 539 Companies
in the Global Business Services industry.

( Industry Median: 3.16 vs. ADP: 68.07 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
ADP' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 3.13  Med: 8.14 Max: 68.16
Current: 68.07
3.13
68.16
Price-to-Intrinsic-Value-Projected-FCF 2.27
ADP's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
70% of the 326 Companies
in the Global Business Services industry.

( Industry Median: 1.47 vs. ADP: 2.27 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
ADP' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.89  Med: 1.41 Max: 3.49
Current: 2.27
0.89
3.49
Price-to-Intrinsic-Value-DCF (Earnings Based) 3.15
ADP's Price-to-Intrinsic-Value-DCF (Earnings Based) is ranked lower than
79% of the 53 Companies
in the Global Business Services industry.

( Industry Median: 1.71 vs. ADP: 3.15 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-DCF (Earnings Based) only.
ADP' s Price-to-Intrinsic-Value-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.72  Med: 1.69 Max: 2.78
Current: 3.15
0.72
2.78
Price-to-Median-PS-Value 1.75
ADP's Price-to-Median-PS-Value is ranked lower than
73% of the 549 Companies
in the Global Business Services industry.

( Industry Median: 1.11 vs. ADP: 1.75 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
ADP' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.48  Med: 0.98 Max: 2.09
Current: 1.75
0.48
2.09
Price-to-Peter-Lynch-Fair-Value 2.91
ADP's Price-to-Peter-Lynch-Fair-Value is ranked lower than
76% of the 149 Companies
in the Global Business Services industry.

( Industry Median: 1.45 vs. ADP: 2.91 )
Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
ADP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.83  Med: 2.3 Max: 4.88
Current: 2.91
0.83
4.88
Price-to-Graham-Number 10.21
ADP's Price-to-Graham-Number is ranked lower than
94% of the 376 Companies
in the Global Business Services industry.

( Industry Median: 1.80 vs. ADP: 10.21 )
Ranked among companies with meaningful Price-to-Graham-Number only.
ADP' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.28  Med: 2.78 Max: 10.22
Current: 10.21
1.28
10.22
Earnings Yield (Greenblatt) % 4.06
ADP's Earnings Yield (Greenblatt) % is ranked higher than
51% of the 716 Companies
in the Global Business Services industry.

( Industry Median: 4.41 vs. ADP: 4.06 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
ADP' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 4  Med: 7.95 Max: 14.6
Current: 4.06
4
14.6
Forward Rate of Return (Yacktman) % 14.45
ADP's Forward Rate of Return (Yacktman) % is ranked higher than
61% of the 386 Companies
in the Global Business Services industry.

( Industry Median: 9.52 vs. ADP: 14.45 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
ADP' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 2.2  Med: 10.6 Max: 24.9
Current: 14.45
2.2
24.9

More Statistics

Revenue (TTM) (Mil) $13,072.10
EPS (TTM) $ 4.00
Beta0.84
Volatility24.53%
52-Week Range $100.51 - 141.52
Shares Outstanding (Mil)440.52

Analyst Estimate

Jun18 Jun19
Revenue (Mil $)
EBIT (Mil $)
EBITDA (Mil $)
EPS ($) 4.32 4.98
EPS without NRI ($) 4.32 4.98
EPS Growth Rate
(Future 3Y To 5Y Estimate)
N/A
Dividends per Share ($)

Piotroski F-Score Details

Piotroski F-Score: 66
Positive ROAY
Positive CFROAY
Higher ROA yoyY
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyN
Less Shares Outstanding yoyY
Higher Gross Margin yoyN
Higher Asset Turnover yoyY

Personalized Checklist

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